by: Michael DiMattio on
How to Increase Your Online Sales
People are always coming up to me and asking, "What can you tell me to help increase my internet sales?" Considered selling backend products to your customers?"
Backend products are simply other products you can offer to your existing customers after they've made their initial purchase. You have a good idea of other things your customers would likely buy.
Think of new things they'd want to purchase. Adding one more product to your site, can increase the lifetime value of your customers--and increase your revenue--by 30 to 50 percent.
DEREK GEHL from Entrepreneur set an example: Here's his example: Amazon.com is telling me about a new Internet marketing book they just got in stock. They knew I might be interested in it because I'd bought other Internet marketing books from them before. And I was interested in that new one, too. In fact, as soon as I got the e-mail, I immediately clicked through to the site, checked out the book and bought it. And in doing so, I boosted my lifetime value to Amazon by another 20 bucks.
Sell a wide range of products, your income can grow exponentially. In fact, I've bought maybe one book a month from Amazon over the past five years at an average cost of $20 each--meaning my lifetime value to them so far is about $1,200.
Selling to existing customers is easier and cheaper than selling to strangers because you've already cultivated a relationship with them. You've put in the time and money to:
- You already got their attention
- You've establish your credibility
- You can continue to build their trust in you
- Overcome any resistance they may have to buying online
- You've close that first sale - so nurture your relationship by adding related products on your online business.
Important thing to remember : Backend products you offer have to be things your target market is going to be interested in. So how do you find the killer products that make this strategy so profitable? It's a lot easier than you think. For example, you can:
1. Offer products that complement your initial product. For instance, if you sell golf clubs, offer your customers a golf club bag to carry them in. Or you could sell golf balls, golf tees, golf shoes, golf training videos--the list is endless.
2. Sell more of the same product. If your product is refillable or needs to be regularly replaced, this strategy works especially well. For example, if you sell things like printer cartridges or batteries, you've got it made. But even if your product isn't refillable, you can show your customers you appreciate them by offering them a special discount on the product they've already bought. That way, if they like the product, they can buy it as a gift for family and friends.
3. Use paid subscriptions as back end products.
4. Established yourself as an expert in your industry, you can build on your reputation by offering a subscription to premium information, available only to members.
5. Try splitting up your current product. For example, if you were selling a book on how to organize your home, you could offer a basic version for $9.95 to generate a large volume of sales at a low price. Then, 30 days later, you could offer your customers an advanced, expanded version that includes home office management and scheduling software for $29.95 or even $39.95--and increase your profits dramatically.
6. Upgrade to their product. If they've used and liked your basic model, your customers will be open to receiving offers for an upgraded version. For example, if you sell e-books that teach people how to use a particular piece of software, you can sell updated versions to previous buyers when the software package in question is upgraded.
7. Write a book. E-books are great backend products with high profit margins. Consider writing a short book on a topic related to your product or service.
8. Create a video. For instance, if you sell "Training Secrets That Will Have Every Puppy Housebroken and Learning Basic Obedience in Less Than One Week." You could even offer a special video that complements your product or service: If you sell barbecue equipment, you might offer a video that teaches people how to perfect their barbecuing techniques.
9. Offer someone else's product. Probably the fastest--and easiest--way to add new products to your site is to join another business's affiliate program and recommend their products in exchange for a percentage of each resulting sale. Selling affiliate products can be a very lucrative way to increase your sales, especially since you don't have to spend any time or money developing a new product of your own. The bottom line is, if you're not offering backend products to your customers, you're losing out on a lot of potential income.